Get generous tax refund from Uncle Sam

BUFFALO, N.Y. (WIVB) - With the economy in the doldrums, just about every penny counts these days. And that's why you want to make sure Uncle Sam is as kind as he possibly can be with this year's tax return.

Who doesn't want to get a refund?

If you do your homework, you might just find a few tax credits you didn't know about.

We've all heard that the stimulus package is going to help Americans. That is, if you plan to buy a house or a new car, but don't expect to see it make an impact on your tax filings for 2008.

H & R Block tax advisor Lorraine Bona said, "If you are buying a house between Janury and the end of the year you are eligible for an $8,000 credit. That means $8,000 in your pocket."

So you can get the credit for those purchases next year.

For this year's filings however, there are a few things that you might not know about.

Take higher education for example, there are four different types of tax credits, benefiting mostly the parents of college students.

Bona said, "Depending on what your income level is and depending on what amount of tuition you pay, you may benefit one more than another."

Also, you can claim that college student longer than you might have thought, and sometimes even other relatives if they live with you.

Bona said, "People don't realize that in the past three years, the definition of a dependent has changed. It can be a qualifying child. It can be a qualifying relative."

Bona says that those home improvement energy credits for new siding and insulation are a thing of the past, "2008 taxes are not as generous with that."

But she adds, they will return for your 2009 tax filings, and advises now more than ever, go to the experts, because filing your taxes has become much more complicated with all the credits out there to take advantage of.

There is a word of advice from the experts - don't get the quick one to two day refund. They are nothing but loans, loaded with extra finance charges.